Why the dividend investor may take a look at NASDAQ:DOX.

AMDOCS LTD (NASDAQ:DOX) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NASDAQ:DOX demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Exploring NASDAQ:DOX's Dividend

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NASDAQ:DOX was assigned a score of 7 for dividend:

• Compared to an average industry Dividend Yield of 2.40, DOX pays a better dividend. On top of this DOX pays more dividend than 93.02% of the companies listed in the same industry.
• The dividend of DOX is nicely growing with an annual growth rate of 12.69%!
• DOX has paid a dividend for at least 10 years, which is a reliable track record.
• DOX has not decreased their dividend for at least 10 years, which is a reliable track record.
• 28.55% of the earnings are spent on dividend by DOX. This is a low number and sustainable payout ratio.

Looking at the Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:DOX was assigned a score of 6 for health:

• An Altman-Z score of 4.96 indicates that DOX is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.96, DOX is in the better half of the industry, outperforming 77.91% of the companies in the same industry.
• DOX has a debt to FCF ratio of 1.10. This is a very positive value and a sign of high solvency as it would only need 1.10 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 1.10, DOX belongs to the best of the industry, outperforming 82.56% of the companies in the same industry.
• A Debt/Equity ratio of 0.18 indicates that DOX is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.18, DOX is in the better half of the industry, outperforming 68.60% of the companies in the same industry.

Profitability Assessment of NASDAQ:DOX

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:DOX, the assigned 7 is a significant indicator of profitability:

• DOX's Return On Assets of 10.49% is amongst the best of the industry. DOX outperforms 84.88% of its industry peers.
• DOX has a Return On Equity of 19.01%. This is amongst the best in the industry. DOX outperforms 82.56% of its industry peers.
• DOX has a Return On Invested Capital of 14.59%. This is amongst the best in the industry. DOX outperforms 87.21% of its industry peers.
• The last Return On Invested Capital (14.59%) for DOX is above the 3 year average (10.11%), which is a sign of increasing profitability.
• DOX has a Profit Margin of 11.44%. This is amongst the best in the industry. DOX outperforms 87.21% of its industry peers.
• DOX has a better Operating Margin (14.77%) than 80.23% of its industry peers.
• DOX's Operating Margin has improved in the last couple of years.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of DOX

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.